2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023

NOTE 20 – TAX INCREMENT FINANCING (CONTINUED)

During the year ended December 31, 2023, the City generated $2,968,707 in tax increment revenue. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" is established for this amount, on which the City makes payments for a fixed period of time with available tax increment revenue after deducting for certain administrative costs. TIF District No. 10 was established in 1996 for the purpose of establishing multifamily rental housing. River City Centre is 52-units of multifamily rental housing owned and operated by the Scott County Community Development Authority (CDA). Under this agreement, up to $2,115,000 in development costs would be reimbursed over twenty-five years with the final year being 2024. The bonds issued to fund the development costs were fully paid as of February 2023 and the district was decertified early on September 30, 2023. TIF District No. 14 was established in 2015 as an economic development TIF. J&J Minneapolis/SanMar is a wholesale apparel and accessories distribution company. This TIF required the creation of 150 new full-time jobs in Shakopee. The first year of disbursement occurred in 2016 and the final year will be in 2024. Under this agreement, up to $2,000,000 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2023, the City generated $394,718 of tax increment revenue and made payments on the pay-as-you-go note of $205,286. As of December 31, 2023 there was no unpaid pay-as-you go balance and the district was decertified. TIF District No. 15 was established in 2015 for the purpose of establishing a housing unit. Trident/All Saints Senior Living is an 80-unit senior community providing assisted living, memory care, and care suites with 20% of the units being affordable to persons of low and moderate income. Under the agreement, up to $1,000,000 of development costs will be reimbursed through tax increment over a 25 year period. During the year ended December 31, 2023, the City generated $174,239 of tax increment revenue and made a payment of $145,847. As of December 31, 2023 the pay-as-you go balance was paid off and future increment received by the district must be used for qualified affordable housing projects. TIF District No.17 was established in 2016 to upgrade the roads surrounding the expansion of Amazon.com. The total amount authorized was $5,698,326 with 40.7% ($2,319,076) of these funds going to the City of Shakopee and 59.3% ($3,379,250) going to Scott County. Under the agreement, up to $5,698,326 of development costs will be reimbursed through tax increment over a 9 year period to the City and County. During the year ended December 31, 2023, the City generated $873,766 of tax increment revenue and made payments of $398,843 to the County and $449,441 to the City. As of December 31, 2023 there was no unpaid pay-as-you go balance and the district was decertified.

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